Microfinance 2.0: How Web 2.0 is helping to explore the Fortune at the Bottom! Siva Prasad http://shivp.wordpress.com

What I Want You to Get Understand the concepts in the title How these concepts are connecting Evolving models in Microfinance Not an opinion that this guy has blabbered 

Understand the concepts in the title

How these concepts are connecting

Evolving models in Microfinance

Not an opinion that this guy has

blabbered 

Microfinance 2.0: How Web 2.0 is helping to explore the Fortune at the Bottom !

The Pyramid Source: UN Development reports

4000 2000 Market Size (Bn USD) Difficult to access, unorganized and dispersed Concentrated,organized, easy to access Characteristic Income generation opportunities Economic freedom 4 Entertainment, Convenience, better quality of life 1 Needs Tier

Income generation opportunities

Economic freedom

Microfinance 2.0: How Web 2.0 is helping to explore the Fortune at the Bottom!

“ The activity of provision of financial services to clients who are excluded from the traditional financial system on account of their lower economic status” - Wikipedia Size of the typical loan ranges from Rs.3000 – Rs.12,000 Without MF, clients pay from 50 – 100% annualized interest rate MFIs charge 12 – 24% rate. Repayment rates above 99%

“ The activity of provision of financial services to clients who are excluded from the traditional financial system on account of their lower economic status”

- Wikipedia

Size of the typical loan ranges from Rs.3000 – Rs.12,000

Without MF, clients pay from 50 – 100% annualized interest rate

MFIs charge 12 – 24% rate.

Repayment rates above 99%

Individuals as lenders Individuals as borrowers

Microfinance 2.0: How Web 2.0 is helping to explore the Fortune at the Bottom!

An architecture of participation and democracy – Participatory Web Users exercise control over the data Network as platform Some social networking aspects A rich, interactive, user-friendly interface Characteristics of Web2.0 Source: www.wikipedia.org

An architecture of participation and democracy – Participatory Web

Users exercise control over the data

Network as platform

Some social networking aspects

A rich, interactive, user-friendly interface

Lending and Borrowing Platform MFI MFI Lenders Borrowers Back to 300 A.D!!!

Existing Models www.Kiva.org www.fundable.org www.microplace.com

www.Kiva.org

www.fundable.org

www.microplace.com

“ You must be the change you wish to see in the world ” - M.K. Gandhi